The way we do business is constantly changing. What worked a few years ago no longer works. That's why many companies are looking for ways to reinvent themselves and be more assertive. In this sense, the concept of Ideal Customer Profile – or ICP – is gaining traction both inside and outside Brazil.
In this text, we will explain why the Ideal Customer Profile is Barbados Email List an excellent opportunity for your business to generate more sales. Here you will find details about:
Summary:
What is an Ideal Customer Profile?
Advantages of ICP for sales
How to define ICP: learn how to create your Ideal Customer Profile
Tips on how to define the Ideal Customer Profile
Happy reading and let's get to the point!
What is ICP? Meet the Ideal Customer Profile
ICP is the acronym for Ideal Customer Profile . This term is used to classify accounts or leads that have a high synergy with the solutions offered by a company.
As the translation itself says, it is the consumer profile that perfectly matches the objectives of a business. Defining the Ideal Customer Profile is like saying: “This is the customer I want in my company!”.
ICP defines which accounts or leads are most valuable to a company.
But the ICP goes further: more than representing the type of customer sought, it portrays the audience that the organization can serve satisfactorily . There is no point in wanting to work with enterprise brands, for example, if you do not have a solution that is suitable for the needs of large companies, right?
Therefore, the Ideal Customer Profile is an extremely important definition for any B2B or B2C company. It is what guides the direction of the business, from attracting leads to after-sales. Therefore, if you still don't know who your target customer is, you need to look into this as soon as possible.
Advantages of defining ICP for lead generation
Now that you know what the Ideal Customer Profile is, it’s time to learn more about the benefits of defining your business’s ICP. See how this can help you generate more leads and sales:
Increased efficiency in the sales team
Do you want your sales team to be more integrated and efficient? Defining the Ideal Customer Profile can certainly help you with that!
Keeping your team aligned on the type of customer you’re targeting can only benefit the acquisition process. When you create your ICP, you:
Focus efforts on the most appropriate acquisition tactics;
Prioritizes contact with leads with the greatest potential, reducing waiting time;
It takes more personalized approaches according to the public’s pain points and needs;
Promises what it will actually be able to deliver as a solution;
Keeps everyone on the same page and avoids internal misalignments.
Did you see how ICP makes your sales operation much more efficient? The benefits are countless and don't stop there. See more below!
Sales Funnel Optimization
Still on the subject of efficiency gains, the creation of the ICP contributes (a lot!) to the optimization of conversion rates . The logic is simple: leads close to the Ideal Customer Profile tend to close deals faster. And this will be reflected in the form of:
More assertive calls and meetings;
Fewer “pipes” in scheduled meetings;
Fewer objections from leads;
Reduction of the sales cycle;
Faster implementation, in the case of SaaS.
“Insisting on the wrong profiles is bad for all fronts. For your company, which may even close a deal, but will certainly have churn in the future; for the client company that, because its needs are not met, leaves frustrated and is the victim of a negative experience.” – Felipe Spina, CEO Maestro ABM
Reduced Customer Acquisition Cost (CAC)
Another great advantage of implementing the Ideal Customer Profile in your company is the reduction in Customer Acquisition Costs. By bringing in more qualified leads that are aligned with your business objectives, you save time and money.
An example of this is the optimization of investments in paid campaigns, such as Google Ads and Facebook Ads. With a well-defined ICP, you stop creating ads for very broad audiences and start to better segment your campaigns, reaching leads that really have potential.
Furthermore, a more efficient acquisition funnel contributes greatly to reducing CAC, mainly due to the reduction in the sales cycle. Faster and more assertive negotiations will generate significant savings in Acquisition Cost.
Increased Return on Investment (ROI) and Lifetime Value (LTV)
There are two other metrics that are positively impacted by defining the Ideal Customer Profile in the B2B segment. Both are extremely relevant for business growth.
One of them is Return Over Investment (ROI), which represents how much money a company made by bringing in a new customer. The other is Lifetime Value (LTV), which indicates the value generated by a customer throughout their stay with a company.
As we mentioned, focusing efforts on strategic accounts reduces CAC and, consequently, increases the brand's profit on the investments made. In addition, engaged customers tend to stay with your company longer, increasing LTV.
Therefore, if you need to optimize the most important indicators of your business, there is nothing better than defining the Ideal Customer Profile!
Read also: The most important metrics and KPIs for a Sales team
How to define ICP: learn how to create your Ideal Customer Profile
Do you want to create your company’s Ideal Customer Profile as soon as possible? We hope so! And to help you with that, we explain how you can put your ideas into practice and finally define your ICP.
It is worth remembering that the information below is a starting point and that everything depends on the business model and the particularities of the company. Therefore, adapt the tips according to your needs and objectives, okay?
So check out each one of them!
Know your business in depth
To find your brand’s ideal audience, you need to know your business like no one else. And here we’re not talking about generalized promises, but rather about delivering real value . In other words, what you actually offer to your customers — not what you’d like to offer.
It is also important to evaluate the company's indicators, since the type of customer chosen directly impacts metrics such as average ticket and CAC.
In this context, it is important to ask yourself the following questions:
What are your company's strengths? What does it offer that is basic and what does it offer that is different from the competition?
What needs to be improved based on public feedback? What are the main compliments received? And the main criticisms?
How does the company improve customers' routines and lives?
How do you measure a client's success?
Based on business objectives and growth goals, what should be the average customer value? And the LTV?
These are just a few examples. The goal here is to show that defining the ICP involves a complete understanding of the business , from the company's mission to the real impact on customers' lives.
Analyze the history of your existing customers
Once you have a deep understanding of your company’s strengths and areas for improvement, it’s time to analyze your current customer base . What can you learn from who has used or continues to use your product?
Some data can provide relevant insights:
Who are the company's main customers and why?
What are the most relevant indicators of these partners? Examples: Revenue, average ticket, company size…
What are the main pain points and expectations of the public? Are these pain points being resolved with your solution?
Who was the decision maker for hiring your company?
What is the average length of time a customer remains a partner?
Through which channels did your most important customers discover your company? Examples: Facebook, Blog, Events, Referrals…
Questions like these will help you map out the characteristics of customers who are successful with your solution . Knowing this will make it much easier to analyze whether it’s worth attracting certain audiences or whether they should be left out of your ICP.
Evaluate who your ideal customer is not
In addition to knowing what you’re looking for in a client, it’s important to know what you ’re not looking for . Being clear about this will help you filter leads and contribute to attracting truly qualified clients.
The tip here is to evaluate the history of consumers, but this time focusing on those who have not had success with your company. Some of the analyses you should do include:
What is the profile of those who detract from your product?
Why didn't these customers perform well?
What are the main criticisms and feedbacks?
Define which criteria are a priority for the ICP
After analyzing the main data about your audience, it’s time to define which criteria need to be part of your company’s ICP. This is where you will put together the “checklist” of what a customer with the ideal profile needs to have in order to be satisfied.
You can make this definition by cross-referencing information from engaged customers with that of detractors, for example. And here it is possible to include several criteria, from structural to technological — those related to the technologies adopted by the company.